How do you make albums on iPhoto?

On the screenshots for iPhoto in the App Store it shows albums like Chicago Trip etc, how do you do that? Say I went to the beach and I took some beach pictures, how do I make an album that says beach and has my pictures in it. By Album I mean the books that show on the shelf when you open iPhoto. On my iPhoto there are edited pictures and camera roll, how do I make my own album?

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